Broker tips: Morrison, Rightmove, Petra Diamonds

Comments from Citigroup were giving the share price of Wm Morrison a boost on Tuesday as it upgraded its rating on the stock from 'neutral' to 'buy' and said that the company's 7.5% dividend yield is "safe".

Analyst Pradeep Pratti said that the company should generate around £350m of free cash flow (FCF) on average over the next three years which will be enough to cover the annual dividend payment of just over £300m, which is expected after management guided to a 5% dividend increase this year.

Canaccord Genuity has lowered its rating for estate agents portal Rightmove from 'buy' to 'hold', saying that it sees littles upside after the stock's recent good performance. The recent appreciation in the shares means that Canaccord's 2,600p target price now only represents 6% potential upside.

For now, in the absence of any news from Agents' Mutual - a new organisation owned by estate agents hoping to undercut both Rightmove and Zoopla - and its website 'onthemarket.com', Canaccord has left its revenue and earnings forecasts for Rightmove unchanged. However, it warned that estimates could come under pressure if Rightmove's clients support Agents' Mutual's possible launch in 2015.

Petra Diamonds has announced "another gem of a find", according to Westhouse Securities which raised its recommendation for the stock from 'add' to 'buy' after the discovery of a 232-carat (ct) white diamond on Tuesday.

The broker said it has made the rating change on the back of recent weakness in the shares, "which has brought the stock back to an attractive level".